Operating cash flow remains persistently negative, evidenced by a $1.2 million outflow in 2026Q1 and a free cash flow margin of -92.7%.
| Cash from Operations | -2.94M | -3.97M | -4.77M | -4.33M | -4.81M | 766.3K | 745.75K | -685.8K |
| Operating CF Margin % | - | -44.29% | -15.7% | -19.83% | -54.53% | 7.08% | 8.26% | -9.51% |
| Operating CF Growth % | 228.18% | 16.82% | -10.25% | 9.93% | -727.5% | 2.76% | 208.74% | - |
| Net Income | 7.01M | -3.88M | -5.21M | -4.19M | -6.68M | -327.04K | 155.06K | -1.26M |
| Depreciation & Amortization | 40.89K | 46.37K | 749.64K | 683.02K | 83.33K | 105.39K | 114.47K | 124.41K |
| Stock-Based Compensation | -192.44K | 0 | 368.74K | 1.43M | 1.52M | 18.79K | 0 | 0 |
| Deferred Taxes | -35.35K | 9.19K | -1.08M | -291.6K | -1.61K | 329.83K | 69.59K | -62.66K |
| Other Non-Cash Items | -11.62M | -1.17M | -815.29K | -2.99M | 278.38K | 339.05K | 351.38K | 330.98K |
| Working Capital Changes | 2.46M | 1.02M | 1.21M | 1.02M | -10.93K | 300.29K | 55.24K | 178.25K |
| Change in Receivables | 502.09K | 322.04K | -193.37K | -337.19K | 296.83K | -341.11K | 237.57K | 145K |
| Change in Inventory | 0 | 0 | 0 | 0 | 0 | -216.14K | -357.64K | 137.5K |
| Change in Payables | -97.26K | -406.06K | 379.64K | 532.79K | -70.53K | 553.01K | 12.12K | -105.07K |
| Cash from Investing | 5.09M | 5.76M | 6.35M | -1.78M | -12.2K | -179.03K | -401.15K | -464.02K |
| Capital Expenditures | 282 | 0 | -7.45K | -526.26K | -57.07K | -36.15K | -27.17K | -30.82K |
| CapEx % of Revenue | 0% | - | 0.02% | 2.41% | 0.65% | 0.33% | 0.3% | 0.43% |
| Acquisitions | 0 | 0 | 0 | -724.91K | 0 | 0 | 0 | 0 |
| Investments | - | - | - | - | - | - | - | - |
| Other Investing | 4.87M | 4.69M | 42.1K | -529.78K | 44.87K | -142.88K | -373.98K | -433.2K |
| Cash from Financing | -2.03M | -1.84M | -318.65K | 136.19K | 8.92M | -257.35K | 2.06M | 875.71K |
| Debt Issued (Net) | -559.13K | -239.89K | -428.18K | -23.71K | -587.13K | -932.26K | 1.14M | 428.31K |
| Equity Issued (Net) | 1.74M | 2.05M | 1.42M | 0 | -3.5M | 677.95K | 932.28K | 0 |
| Dividends Paid | -3.3M | -3.3M | -834.57K | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | -3.5M | 0 | 0 | 0 |
| Other Financing | 84.91K | -351.09K | -479.24K | 159.9K | 13M | -3.03K | -11.52K | 447.4K |
| Net Change in Cash | 35.05K | 12.15K | 1.11M | -6.16M | 4.04M | 78.66K | 2.52M | -262.67K |
| Free Cash Flow | -2.82M | -3.97M | -4.78M | -4.86M | -4.87M | 730.15K | 718.58K | -716.63K |
| FCF Margin % | -25.87% | -44.29% | -15.73% | -22.24% | -55.18% | 6.75% | 7.96% | -9.94% |
| FCF Growth % | 62.53% | 16.95% | 1.55% | 0.17% | -766.39% | 1.61% | 200.27% | - |
| FCF per Share | -2.22 | -3.12 | -4.57 | -4.76 | -5.51 | 0.75 | 0.74 | -0.74 |
| FCF Conversion (FCF/Net Income) | -0.40x | -0.69x | 3.22x | 1.03x | 0.72x | -2.27x | 4.94x | 0.56x |
| Interest Paid | 61.58K | 109.44K | 143.1K | 85.63K | 41.85K | 25.08K | 26.73K | 34.66K |
| Taxes Paid | 118.26K | 211.84K | 298.47K | 91.71K | 3.01K | 9.62K | 5.43K | 4.19K |
Persistent operating cash burn
As reported in financial statements, HeartCore's operating cash flow consistently trails net income, with the company recording a negative operating cash flow of $1.2 million in 2026Q1 despite the volatility of its reported earnings, signaling a fundamental lack of cash-generative quality in its core business model.
The recurring gap between net income and operating cash flow suggests that reported profits are frequently driven by non-cash or non-operating items rather than sustainable software operations. Investors should monitor this divergence, as it implies that the company's accounting profitability does not translate into the liquidity required to fund ongoing development.
Based on the company's reported figures, free cash flow has remained persistently negative over the last ten quarters, with a 2026Q1 margin of -92.7%, indicating that the firm is unable to self-fund its operations through its current mix of software and consulting activities.
The consistent inability to generate positive free cash flow suggests that the business model is currently structured to consume capital rather than produce it. This trajectory warrants further investigation into whether the company can achieve scale or if it will remain dependent on external financing to cover its operational deficits.
According to recent SEC filings, HeartCore's working capital changes have been highly erratic, swinging from a $1.5 million inflow in 2025Q4 to a $953.9 thousand outflow in 2025Q1, which reflects the lumpy and unpredictable nature of its project-based consulting and IPO-related revenue streams.
These fluctuations suggest that the company's cash position is highly sensitive to the timing of client payments and project milestones. Such volatility complicates cash flow forecasting and may indicate that the company lacks the standardized billing cycles typical of a mature, recurring-revenue software enterprise.
As indicated by historical data, the company has engaged in dividend payments despite its ongoing operating cash burn, such as the $3.3 million outflow in 2025Q4, which appears difficult to reconcile with the firm's limited cash reserves and negative free cash flow profile.
This pattern of capital allocation suggests a potential misalignment between management's dividend policy and the underlying operational reality of the business. Investors should monitor whether these outflows are sustainable or if they represent a strategic misallocation of capital that further weakens the company's already strained liquidity position.
Quick answers to the most common questions about buying HTCR stock.
HeartCore Enterprises, Inc. (HTCR) generated $-4.0M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
HeartCore Enterprises, Inc. (HTCR) reported negative free cash flow of $4.0M in 2025, indicating capital requirements exceeded cash from operations.
HeartCore Enterprises, Inc. (HTCR) spent $0.0M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, HeartCore Enterprises, Inc. (HTCR) returned $3.3M to shareholders via cash dividends. This shows the company's commitment to returning capital to its equity investors.